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The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $598,600 are allocated on the basis of machine hours.
The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $598,600 are allocated on the basis of machine hours. The Accounting Department's costs of $220,800 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $260,000 and $460,000, respectively. A B Maintenance 725 Accounting 105 2,550 370 Machine hours Number of employees 2 2. 4 What is the Maintenance Department's cost allocated to Department A using the direct method? Multiple Choice $476,750 $338,750. $633,150. $522,750
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